Local Authority round-up 02/08/19
2nd August, 2019
Our Local Authority round up provides brief summaries of topical information on a weekly basis, to keep you aware of the changes and updates relevant to you.
Brexit
Extra £2.1bn funding to prepare for a no-deal Brexit
The Government has announced that an extra £2.1bn of funding will be made available to prepare for a no-deal Brexit. The plans include more Border Force officers, upgrades to transport infrastructure at ports, money for stockpiling medicines to ensure continued supplies and a national programme to help businesses. Sajid Javid commented that “this additional £2.1bn will ensure we are ready to leave on 31 October – deal or no-deal.”
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Chief Brexit negotiator warns the EU not to underestimate the new Prime Minister
David Frost, the chief Brexit negotiator has told his colleagues that it would be a mistake to underestimate Boris Johnson and told them that they should have “no doubt about this Government’s commitment to the 31 October date.” Michael Gove has said that there will be no delays in exiting the EU, and “it’s [his] job to get the country ready.” Meanwhile, the Confederation of British Industry has warned that neither the UK nor the EU is ready for a no-deal Brexit and whilst it has published practical steps it says countries and firms can take, “the unprecedented nature of Brexit means some aspects cannot be mitigated.”
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The Government has assumed a “no-deal” Brexit will happen
Boris Johnson has put Michael Gove in charge of preparing for a no-deal Brexit and has allegedly told him to chair no-deal meetings seven days a week until Brexit is delivered. Gove has said that he had hoped EU leaders might open up to the idea of striking a new deal, but added that “we must operate on the assumption that they will not.”
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No-deal Brexit up to the EU
Boris Johnson has said, on his first Welsh visit, that it is the EU’s call whether the UK leaves the EU without a deal. Wales’ First Minister said he emphasised to the Prime Minister the “catastrophic effect” a no-deal Brexit would have on the Welsh economy, and the Prime Minister provided assurances of support for manufacturing and agriculture in such a scenario. Many Welsh farmers are heavily reliant on free trade with the EU. If the UK leaves without a deal many farmers would face significant tariffs on their exports to EU countries, including at least 40% tariffs on Welsh lamb. The Prime Minister has said that there was “every chance” a Brexit deal with the EU could be struck, but the existing agreement with the EU “has to go.”
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Housebuilders warn standard of homes could deteriorate due to Brexit uncertainty
The standard of homes being built in the UK risks deteriorating as some builders have started laying off staff and relying more frequently on sub-contractors because of “Brexit uncertainty” and fears of a no-deal departure from the EU. The Federation of Master Builders (FMB) has warned that contractors are less likely to “build to the right standard” and relying on them could lead to “reputation-damaging mistakes.” A survey found that firms were reluctant to directly employ workers because of the risks of “economic shock-waves” if the UK leaves the EU this year. The survey also revealed a drop in employment among FMB members for the first time in over 5 years.
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Government plans to buy up hundreds of thousands of tonnes of unsold lamb unworkable
The Government has plans to buy tonnes of unsold lamb in the event of a no-deal Brexit but its plans have been labelled ‘unworkable’ due to a lack of storage space for the meat. The Cold Chain Federation’s Chief Executive, Shane Brennan, said that “no-one in Government has spoken to the industry about where they’ll put the lamb if they buy it.” The proposal, which was drawn up by Michael Gove, provides that the Government would set aside £500m to buy excess lamb and beef at a predetermined price. However, cold storage businesses estimate that they will be at 96% capacity by September this year and Mr Brennan says that “capacity could not be increased quickly, because planning and building a new cold-storage warehouse takes about three years.”
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Commercial
100 towns to receive £3.6bn in funding
Boris Johnson has announced that the £3.6bn Towns Fund will be made available to an initial 100 towns to help improve transport and broadband connectivity, as well as give a boost to ‘vital social and cultural infrastructure,’ such as libraries. The Prime Minister also said that he intends to give greater powers to council leaders and communities. In response to the announcement, the chairman of the Local Government Association commented that it was “good news for local communities and businesses seeking to improve their prospects.” However he warned that councils face a funding gap of £8bn by 2025.
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£3.5bn promised by Jeremy Corbyn for tidal power scheme
As part of a ‘green industrial revolution’ to give the North an economic boost, Jeremy Corbyn has announced plans to invest £3.5bn into the Mersey Tidal Power Project. The project aims to harness the power of the River Mersey and Liverpool Bay to produce clean, renewable energy to power up to a million homes, create thousands of jobs and contribute towards the UK’s zero-carbon economy. The mayor of Liverpool City Region commented that “this is a huge vote of confidence in the Mersey tidal project and underlines Labour’s commitment to northern devolution.”
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Guildford Council to spend up to £20,000 for local plan review
Guildford councillors’ have voted to spend up to £20,000 on appointing a Queen’s Counsel to give a second opinion on whether its local plan is robust enough, in the event of it being challenged in the High Court. The local plan has been controversial amongst some residents as the plan identifies three major green belt sites for 5,200 new homes and removes green belt protection from 15 villages in the borough. In March, a Government planning inspector commented that the plan was “sound and the use of rural land was justified to meet a pressing need for housing.”
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Regulatory
Council tenant fined over £100,000 for sub-letting council flat on Airbnb
Westminster Council has fined a tenant more than £100,000 for illegally renting his council flat in Victoria to short-term tenants through Airbnb. The flat had been rented out via Airbnb from 2013 until summer 2018 when the council was awarded a possession order for the property. Westminster’s Cabinet Member for Housing Services said that the Westminster Council is “pressing Government to introduce a national registration scheme to make it far easier for us to take action against anyone who breaks the rules on short term letting.”
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London boroughs considering introducing workplace parking levies
In a bid to cut pollution and encourage active travel, several London Boroughs are considering introducing workplace parking levies (WPL) of at least £750 per year. Hounslow Council has already carried out an informal consultation on a potential WPL and other boroughs, including Camden, are actively exploring the option. Any proposal from a borough would have to be approved by the Mayor and Transport for London.
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Planning and housing
‘Poor doors’ to be banned in new housing developments
The Government plan to remove the segregation of social housing residents in mixed-tenure developments by banning ‘poor doors.’ Currently, in some housing developments, social housing tenants are forced to use separate entrances from private tenants and there are even separate playgrounds keeping children apart. Communities secretary James Brokenshire commented that the measures will “help tackle the stigma associated with social housing.” He further commented that social housing “has the power to continually shape lives for the better, but we need to see residents being treated with the respect they deserve.”
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£57m funding for estate next to Grenfell
Kensington and Chelsea Council has announced plans to invest £57 million in transforming an estate next to Grenfell Tower. The funding will ensure that buildings are fitted with double glazing, new kitchens and bathrooms and updated heating systems. As part of the initiative, 12 jobs, an apprenticeship and 16 training courses will be created. The project is looking to deliver a “model 21st century social housing estate.”
For more information please click here.
Whitehall urged to speed up council housebuilding
London Councils warn that London boroughs face constraints on their ability to deliver homes at significant scale. London Councils have said that Whitehall should end restrictions on the use of Right to Buy receipts and provide clarity over long-term social rent levels. The group argue that these measures would make council housebuilding much more financially viable. London Councils’ executive member for housing and planning said “we want to work with the Government to address restrictions on our ability to build. Through just a few key policy changes, the Government could have a massive impact.”
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Upcoming seminars
As you may well know we run a programme of seminars on a wide range of topics. Listed below are those seminars coming up which we feel may be of interest to you. Please click on the links for further information and to book your place. You can see our full programme of upcoming events by clicking here.
NHS Estates Forum
Join us at a free half-day forum where experts will discuss some of the key strategic issues impacting on Estates currently. We are running the forum jointly with NHS England and NHS Improvement, Audit One (a leading not-for-profit provider of internal audit) and North Tees and Hartlepool Solutions LLP.
Thursday 5th September (Leeds)
Tuesday 10th September (Newcastle)
Housing Management Law School – Autumn Term 2019
Join us at the next Ward Hadaway Housing Management Law School taking place this Autumn. Autumn term will bring with it a brand new programme where our social housing experts will update you on the most recent news and topics that you need to know about from both a legal and practical perspective.
Wednesday 9th October (Newcastle)
Thursday 17th October (Manchester)
If you have any questions about the issues raised in this update, please do not hesitate to get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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